Being your own boss with the convenience of earning money on your laptop or mobile whenever it is convenient for you, is enough reason for both recent graduates and seasoned professionals to invest in forex day trading or pursue it as a career.
Let’s look at the results of fp market reviews so you can decide whether it’s right for you. Because day trading is very popular these days. Day trading has several advantages, but it also has some hurdles.
Pros of Day trading in forex
So, first, let’s go through the benefits of becoming a day trader, and then we’ll look at the disadvantages.
What does it mean to day trade?
Day trading is when you open and close a trade on the same day. In many situations, traders will only maintain positions for a few minutes.
The costs of forex trading might be extremely minimal (brokerage and commissions). In a true sense, there are no fees because the best forex brokers in India earn on the margins between currencies. There is no need to include separate brokerage costs, therefore reducing overhead. When trading stocks or other securities, the brokerage structure varies considerably, and a trader must account for such costs.
It is quick and produces immediate effects. What exactly do I mean when I say “immediate results”? Well, you’ll know whether you’re right or incorrect in a matter of minutes since the transaction will either move in your favor and you’ll be able to profit, or it will move against you.
So, at the end of the day, you already know how well you’re doing after performing several day trades.
Volatility a Trader’s Friend
The main currencies see large price fluctuations regularly. High volatility may help you make a lot of money if you arrange your transactions correctly.
Cons of Day trading in Forex
In essence, there are several benefits to forex trading, but there are drawbacks as well.
For some people, day trading is similar to playing a slot machine at a casino. I’ve seen folks lose their whole account due to their addiction to day trading. When you are doing other trading, which is what I prefer to do as well, you only place one transaction each day and then you’re done and can relax.
Overtrading might be risky
When a day trader begins the day with a few losing transactions, the trader may think to himself, “Oh, if I simply trade more, I’ll make up the money I lost. Now, I don’t know about you, but when I was overtrading or revenge trading, which was typically when I was having a horrible day, things simply got worse.
These are the main pros and cons of day trading that are based on my personal experience. Day trading in forex is not a good idea if you have an addiction issue. And, hey, you’re the one who knows yourself best, right?